Shakey’s 2016 profit rose by 58% to P760M

Shakey’s Pizza Asia Ventures Inc. (SPAVI), the country’s leading pizza parlor chain, grew its net profit last year by 58 percent to P760 million on stronger sales, improved margins and expanded store network.

This includes a net non-recurring income of P90.3 million arising from a change in ownership early last year, alongside a subsequent corporate restructuring and initial public offering during the second half of last year.

Excluding extraordinary items, SPAVI’s net profit last year amounted to P670 million, rising by 40 percent from the previous year.

System-wide sales rose by 14.3 percent to P7.34 billion as the restaurant chain grew sales from the existing network by 3.9 percent while newly opened stores also contributed earnings.

In the last 12 months, SPAVI added 17 outlets compared to 14 opened the year before, ending 2016 with a network 184 stores.

Same-store sales excluded the impact of newly opened stores for better comparison with the previous year’s numbers.

SPAVI reported that recurring revenues last year, including those from an in-house commissary, increased by 14.7 percent to P6.01 billion.

Late last year, a corporate restructuring took place, which included the company’s acquisition of its commissary that supplies bakery products to Shakey’s as well as other food service customers.

In 2016, SPAVI also reported an improvement in profitability as margins for recurring gross profit and earnings before interest, taxes, depreciation and amortization (EBITDA) expanded by 820 basis points to 31 percent and 320 basis points to 19.7 percent, respectively.

The company attributed SPAVI’s growth to favorable commodity prices and purchasing synergies in the aftermath of its consolidation into the Century Pacific Group (CPG), which is led by the Po family.

CPG is the parent company of leading canned food manufacturer Century Pacific Food.

CPG and Singapore’s sovereign wealth fund concluded early last year a partnership to acquire the majority of the pizza business from its previous controlling stockholders led by the Prieto family.

SPAVI also debuted on the stock exchange late last year under the ticker PIZZA.

Since taking over the pizza chain, the company reported that recurring net income margins have expanded by 200 basis points.

“Our industry-leading performance is anchored on the superior value offering of Shakey’s, its strong management team, and a brand legacy that we have built over a 40-year history here,” SPAVI president Vicente Gregorio said. —DORIS DUMLAO-ABADILLA